Rep. Chris Cannon, R-Utah, has introduced legislation to require credit reporting agencies to disclose any risk predictor -- including credit and mortgage scores -- to consumers upon their request.

Scoring is the process that creditors use to predict economic risk by placing numerical values to different portions of a person's credit files. It has been used for years by credit card issuers and more recently by the housing finance industry to rate the probability that a would-be borrower might default on his mortgage.

Generally, the higher the score, the more credit worthy the borrower and the better his loan terms.

Rep. Cannon's bill, which would amend the Fair Credit Reporting Act, represents the first at attempt at the federal level to make sure consumers can receive and interpret the scores used in the mortgage approval process. But it may turn out to be totally unnecessary.

Fannie Mae and Freddie Mac, the two government-sponsored enterprises which are responsible for providing more than half the nation's housing credit, have already given home buyers a explanation of the factors they use in underwriting the loans they purchase from local lenders.

Two of the three major credit repositories have said they will do the same, and Fair, Isaac & Co., the developer of FICO scores used by as many as three-quarters of the nation's mortgage lenders, has made public a comprehensive list of the factors used in its risk-based scores. Fair Isaac also is developing an Internet-based service that will explain individual FICO scores.

Nevertheless, the second-term legislator from Utah's third district has the support of the National Association of Realtors, the U.S. Public Interest Research Group and E-Loan, the on-line mortgage company that brought the issue to a head when it began telling clients their FICO scores, even though it was against Fair Isaac's rules.

"I want to take some of the frustration out of the search for a mortgage loan," Rep. Cannon said

"Giving a consumer this information empowers them to make wise financial decisions. Consumers will better know what mortgages and loans they qualify for, and what type of interest rates they can get based upon their credit history. They will be able to shop for the best financial services they can get and know what to expect."

Until Fair Isaac made its comprehensive list of scoring factors public last month, they were not accessible to the average consumer. Lists of reason codes for the scores have been given to lenders and regulators for several years, but lenders rarely turned them over to their clients because they were difficult to interpret. Each score is delivered with up to four reason codes, which lenders could use to help improve the credit ratings of borrowers who were turned down.

"The score is just a number," said Fair Isaac President Tom Grudnowski. "Unless you're a lender, it doesn't tell you much."

Now, though, the move to disclose scoring factors will enable consumers to better understand how their individual numbers were derived, and what actions they can take over time to raise their score.